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| Query corner: Cairn India
Last Updated: 2009-09-27 15:11:47
Please advise me on the long and short term prospects for Cairn India. Sanjit Das
Cairn India (Rs 261.2): The last time we had visited Cairn India, the stock was still in the throes of the bear market in January this year. We had indicated that a strong close above Rs 215 was needed to take it to Rs 250.
We had also advised investors to accumulate the stock in declines with a stop at Rs 85.
Cairn India never re-visited its October 2008 lows and has been on a steady uptrend through 2009. The stock is currently hovering above key long-term resistance at Rs 250. If it sustains above this level, it can attempt to move towards its all-time high or even higher. Long-term investors can hold the stock with a stop at 200.
The stock could however move sideways in the band between Rs 200 and Rs 270 in the short-term.
Fresh purchases with a short-term perspective should therefore be made only on a strong close above Rs 280. Stop-loss for the short-term can be at Rs 245.
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